Knight Gets Boost as Getco Deal Confirmed

Knight Capital shares are climbing, slowly, toward the $3.75 offer price after the trading firm officially announced the previously reported deal it struck with rival Getco.

Knight’s valuation took a major hit last August, when shares were trading over $10, after faulty trading software drove a sudden $461 million loss for the firm, forcing it to seek rescue investment from a group of six financial firms, including Getco.

Now its clawing back some of that with its deal, which values shares at $3.75 a piece.

“The transaction provides near-term certainty in the form of cash, while also allowing shareholders to benefit from participation in the future success of the firm,” CEO Thomas Joyce said in a statement.

Knight shares gain 8.1% to $3.60 premarket, and have been gaining still, yet appear to be leaving some room for approvals from shareholders and regulators to clear the transaction, which is seen closing in second quarter of 2013.

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